Phillips v. Commissioner
United States Tax Court
Long-Term Capital Gain or Ordinary Income -- Secs. 1222, 736 (a)(1). -- An amount received by one partner, the petitioner, from the only other partner under an agreement to terminate the partnership, represented long-term capital gain from the sale of the petitioner's interest in the partnership business rather than payment for past services, unrealized receivables, or partnership income under section 736(a)(1).
1Opinion of the Court
OPINION
Murdock, Judge:
The explanation of the determination states first that “$10,954.01 ($11,704.01 principal less expenses of $750.00)” was included in gross income because “it represents payment for past services rendered.” The parties stipulated “that no part of the $11,704.01 received by petitioner in 1958 represents past services rendered to the Harry C. Miller Co. partnership” but the Commissioner contends that the deficiency notice was intended to refer to past services rendered by Charles to Garcia and paid by Garcia through Miller. The evidence shows that there is no merit in that…
2Cited by12 opinions
- Foxman v. CommissionerUnited States Tax Court · 1964
- Stilwell v. CommissionerUnited States Tax Court · 1966
- Coven v. CommissionerUnited States Tax Court · 1976
- Harry C. v. United StatesUnited States Court of Claims · 1967
- Logan v. CommissionerUnited States Tax Court · 1968
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